Barack Obama sent $221 to Palestine during his last hours as president
The huge transfer was one of Mr Obama’s last acts in the White House with the cash being released just hours before Donald Trump was inaugurated last Friday.
However, the new president’s administration attempted to freeze the transfer, with two Republican congressman requesting a hold.
These holds, however, while usually respected are not legally binding and the Palestinian president's office confirmed the transfer had gone through succesfully.
Husam Zomlot, an advisor to the Palestinian president Mahmoud Abbas, said: “We have already received the last sum assigned by Obama's administration. They have transferred this money.”
Mr Obama's cash transfer to Palestine angered many within the Republican party.
President Obama during a trip to Israel
Congresswoman Kay Granger said she was “disappointed” at Mr Obama’s actions.
She said: “I am deeply disappointed that President Obama defied congressional oversight and released $221 million to the Palestinian territories.”
Despite this, Mr Zomlot said he hoped Mr Trump would “carry on with the policy that their predecessors had.”
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This seems unlikely given the attempted block and rumours Mr Trump is considering moving the Israeli embassy from Tel Aviv to Jerusalem – a city claimed by both the Israeli and Palestinian authorities.
Mr Trump said before taking power: "We cannot continue to let Israel be treated with such total disdain and disrespect. They used to have a great friend in the US, but not anymore.
Barack Obama's decision to send Palestine $221 has sparked controversy in America and Israel
"The beginning of the end was the horrible Iran deal, and now this! Stay strong Israel, January 20th is fast approaching!"
Mr Trump’s spokesman Sean Spicer, however, said talks were still ongoing regarding the controversial and mooted embassy move.
He said: “There’s a reason you go through a decision-making process and that’s what we’re in the process of starting right now.
Barack Obama approved the transfer of $221 million to the Palestinian Authority
“I don’t want to get ahead of [things] – if it was already a decision, we wouldn’t be going through a process.”
The rumoured move provoked a ferocious response within parts of the Middle East.
Iraqi cleric and militia leader Moqtada al-Sadr said: “Transferring the US Embassy to Jerusalem would be a public and more-explicit-than-ever declaration of war against Islam.”
More money was also released by Mr Obama during his last hours in office for climate change programmes, which received $4m.
Another $1.25m was distributed to various United Nations agencies. That cash will be spent on ozone protection and stopping sex exploitation.